August 2, 2008 - R.J. Reynolds testing Camel Crush, a cigarette that allows users to customize their experience with menthol. A capsule in the filter can be crushed anytime - before lighting, while lit or near the end of smoking -- to add a menthol flavor to the cigarette, which is made of the Camel Light blend of tobacco, according to R,J. Reynolds spokesman David Howard. Howard claimed Crush appeals to menthol and non-menthol smokers. (Convenience Store News)

Daniel M. Delen, Chairman, President and Chief Executive Officer of R.J. Reynolds Tobacco: Camel Crush is proving to have a great deal of appeal, it was introduced on a test market in the first quarter of 2008 and the plan is to expand nationally in September 2008. This technology has already been introduced in the Japanese market, where it has strong appeal. (RAI CEO: 'Solid Quarter Keeps Company on Track', PR Newswire, 7/30/2008.

In our studies of menthol and tobacco smoking - there are either regular cigarette smokers and menthol cigarettes smokers. The regular smokers rarely, if ever, have the urge to try a menthol cigarette. Another problem is that amount of menthol being delivered will never be consistent. In addition, the presence of the capsule interferes with the inhalation of the smoke.

From our menthol and smoking website: Concord Menthol (PM document #2501008196, also 2500002401) had an adjustable filter. Touted as the first cigarette ever that lets the smoker adjust the menthol flavor from rich to mild. By twisting the arrow on the filter the smoker can adjust the menthol flavor - rich when wanting a cool rich low tar and mild when wanting a light refreshing ultra low tar.

As of July 25, 2006, the Rothman, Benson and Hedges launched (Philip Morris already owned had a 40% stake) a cigarette that looks like, smells like, and by all accounts, tastes like Marlboro but could not use the Marlboro or brand name.

This is because the Marlboro name is owned by a British American Tobacco (BAT) affiliate (Imperial Tobacco of Canada - the largest tobacco company in Canada) Philip Morris/Altria's biggest competitor in the global cigarette market. Since 1932 the Marlboro trade mark has been owned by BAT-related companies -- and they have staunchly kept it in use to defend against Philip Morris introducing its much more popular brand.

As a result of this purchase is PMI creating more legal and public relations headaches for themselves??

Based on information provided by Citigroup analyst Adam Spielman. RBH is facing extensive litigation in British Columbia.massive C$10 billion lawsuit brought by British Columbia against the tobacco industry. The province is suing for state-sponsored health-care costs allegedly racked up because of the effects of tobacco products. While Philip Morris International already has some exposure to the costs of that litigation–because, after all, it owns 40% of RBH–with the acquisition it will be taking on all of the risk. Philip Morris doesn’t believe the litigation poses much of a threat. Citigroup’s Spielman disagrees.RBH, in fact, just settled a smuggling case. The company admitted liability from selling cigarettes duty-free into the U.S. from 1989 to 1994, only to have third parties smuggle the shipments back into Canada. RBH paid a fine of 100 million Canadian dollars and could pay an additional C$450 million over the next 10 years, Spielman said. More: Smuggling Case.

Segment wise, R.J. Reynolds' second-quarter operating profit of $523 million were up 5.4% from the year-ago quarter, and Conwood's second-quarter operating profit of $96 million was up 5.5% from the prior-year period (15 percent of overall operating profit). The company said that second-quarter growth on Conwood's flagship Grizzly brand accounted for almost half of the industry's total moist-snuff volume growth of 7.7% compared with the prior-year quarter.

Related news brief: Comparison U.S. Smokeless Tobacco Players: No. 1 UST and No. 2 Conwood..Daniel Delen, president and chief executive officer of R.J. Reynolds said, "Our second-quarter profits and margins were up from the prior year due to higher pricing and continued productivity improvements, along with higher levels of undiscounted wholesale inventory." However, the company said the increase was more than offset by a second-quarter cigarette volume decline of 7.9%. More than 40% of that decline was due to lower volume from the company's non-support brands.

August 1, 2008 - Altria GroupInc.'s second-quarter net income tumbled 58%. This was the Altria Group Inc., parent of cigarette maker Philip Morris, third consecutive quarter that profits fell as sales declined and the company spent more to win back smokers from lower-priced brands. Sales - Domestic vs International.Michael E. Szymanczyk, Chairman and Chief Executive Officer of Altria Group, Inc. said, "PM USA delivered solid income growth and achieved strong retail share results, driven by Marlboro, and John Middleton's cigar business delivered strong income, volume and share performance." Marlboro achieves record retail share of 41.8%, up 0.8 share points versus the second quarter of 2007 while the company's market share for all brands reached 51 percent of the entire U.S. market. John Middleton Co. (Black&Mild Cigars) delivers strong cigar volume gains, up 11.0% versus the second quarter of 2007. Middleton's second-quarter retail share increased 2.6 share points versus the prior-year period to 27.8% of the machine-made large cigar segment, driven by Black & Mild. At the end of the first quarter of 2008, PM USA's Sales Force began representing Middleton's brands at retail.

Philip Morris USA's cigarette shipment volume fell 4.5 percent in the U.S PM USA's domestic cigarette shipment volume of 43.6 billion units was 4.5% lower than the prior-year period. The company lowered its outlook on U.S. industrywide cigarette volumes 3% to 3.5% a year , compared to a March 2008 view of 2.5% to 3% citing economic conditions, cigarette excise taxes and retailer inventories.

David Beran, Executive Vice President and Chief Financial Officer said Philip Morris USA believes it can offset declining cigarette consumption by moving more aggresively into the smokeless tobacco and spitfree smokeless-tobacco pouches called snus.

July 31, 2008 - Julius B. Richmond, a pediatrician whose work on cognitive development in poor children led to his being the first national director of Project Head Start, widely regarded as one of the most successful social programs of the last half-century, and who later as surgeon general was a fierce adversary of the tobacco industry, died on Sunday, July 27, 2008 at his home in Chestnut Hill, Mass. He was 91.

A natural and fierce advocate for public health, Dr. Richmond produced a 1979 report called “Healthy People: The Surgeon General’s Report on Health Promotion and Disease Prevention,” setting out, for the first time, health objectives for the nation as a whole. A vigorous antismoking campaigner, Dr. Richmond produced another report as surgeon general that declared there was “overwhelming proof” that tobacco caused lung cancer.

July 31, 2008 - Toronto based Rothmans Inc. announced on Thursday, 7/31/2008 it has agreed to a friendly takeover by American tobacco giant Philip Morris International PMI) for a $2 billion all cash offer. The deal will add sales of about 11 billion cigarettes (a third of Canada's cigarette market) and expand PMI's discount brands.

The deal was contingent on the resolution of an on-going RCMP (Royal Canadian Mounted Police)investigation against Rothmans that concluded on Thursday, 7/31/2008. Rothmans agreed to pay the federal government $550-million over the next decade after the company "entered a plea of guilty to a single count of violating a provision of the Excise Act" relating to smuggling allegations, it said. Imperial Tobacco Canada Ltd., the biggest tobacco company in the country also pleaded guilty today.

Rothmans generated revenue of $670.6 million in the year through March, 8.4 percent higher than a year earlier after the maker of Benson & Hedges and Dunhill cigarettes raised prices and boosted shipments of discount brands Accord and Quebec Classique.

July 30, 2008 - The U.S. House of Representatives late Wednesday overwhelmingly passed (326 to 102) the Family Smoking Prevention & Tobacco Control Act, legislation that would give the Food & Drug Administration (FDA) the power to regulate tobacco, from cigarettes to new kinds of smokeless products. While the bill appears to have enough support to pass this year, it is unclear whether the Senate will have time to act now faces an uphill climb in the Senate, where a similar bill has been stalled since last August.President Susan Ivey Reynolds American Inc. said, "We really don't think it will reach the Senate floor." "We continue to have dialogue to talk about potential alternative regulation. And we prepare ourselves for any implications of this current FDA bill," she said. Reynolds and other bill opponents have argued that by limiting marketing, it would protect Philip Morris' position as market leader. If the Senate and House fail to pass the same tobacco-regulation bill and get it signed it into law, then lawmakers will have to restart the process with a new bill when the new Congress begins in 2009.The bill represents a compromise between major tobacco control groups and Philip Morris USA, the nation's largest tobacco company.

PM USA, however, is hoping the legislation could lead to a new market in federally certified, reduced-risk tobacco products. The bill sets up a process for the FDA to scientifically assess manufacturer claims that certain cigarettes are less risky. The legislation appears to set a high bar to such claims. Not only must a reduced-risk product "significantly" reduce harm to tobacco users, but it also must "benefit the health" of the entire population. A less risky cigarette that enticed nonsmokers to light up might not meet that test.

But some supporters said the bill was more about protecting children than adults. Rep. Tom Davis (R-Va.) said tobacco use has become synonymous with rugged independence and a refutation of authority, traits that he said many teens desire. "In large part, the marketing tactics by tobacco manufacturers fanned the flames of youthful angst," he said.

Hospital admissions fell 17% after after Scottish law enacted (prohibited smoking in all enclosed public areas and workplaces after March 2006). There was a 14% reduction in the number of admissions for acute coronary syndrome among smokers, a 19% reduction among former smokers, and a 21% reduction among persons who had never smoked. Researchers found that nonsmokers with heart disease had higher levels of cotinine than the general population but lower levels than before the ban, a sign that their exposure to secondhand smoke had decreased but was still a factor in their heart damage.

Bill Phelps Spokesman for Altria Group Inc: "We think that people should be able to avoid being around second-hand smoke, especially in places they must go, such as government buildings and public transportation. But he added that "business owners, particularly those who own restaurants and bars, should be able determine smoking policy for their own businesses."

There are about one million hospitalizations for acute coronary syndrome in the U.S. every year. Each episode generally costs between $10,000-$20,000 to treat, pegging the cost of this care at $10 billion per year or more.

July 31, 2008 - Two Canadian tobacco firms (Imperial Tobacco Canada Ltd -- a unit of British American Tobacco and Rothmans Benson & Hedges Inc, a unit of Philip Morris and Rothmans Inc) admitted on Thursday (7/31/2008) they had aided the contraband tobacco trade and will pay out more than C$1 billion ($980 million) in record fines and payments to boost anti-smuggling efforts over the next 15 years. The charges relate to the years between 1989 and 1994, when tobacco taxes in Eastern Canadian provinces were so high that they prompted widespread smuggling. Tobacco exported from Canada to the United States was then illegally brought back into the country.

Both tobacco companies admitted in court to a single charge of "aiding persons to sell and be in possession of tobacco manufactured in Canada that was not packed and was not stamped in conformity with the Excise Act and its amendments and ministerial regulations."

July 30, 2008 - The San Francisco Board of Supervisors voted 8 to 3 Tuesday, July 29, 2008, to ban the sale of tobacco in pharmacies beginning this fall. The measure amends San Francisco's health code to prohibit tobacco sales in any pharmacy, whether a small mom-and-pop store or a large retailer like Walgreens. Drugstores caught selling tobacco products in the city will be fined up to $1,000.

"A pharmacy should be a place you go to get better, not a place you go to get cancer," said Nathan Ballard, a spokesperson for the mayor's office.

The citywide ban was modeled on rules enacted in eight Canadian provinces. Similar proposals have failed this year in Rhode Island, New Hampshire, Tennessee, Illinois and New York. San Francisco is the first city in the country to ban the sale of tobacco products in pharmacies, Ballard said.

July 30, 2008 - New South Wales (NSW) Premier Morris Iemma and his Cabinet Members Protecting the Health of their Constituents. Premier Iemma: "When it comes to smoking, we'll always err on the side of caution."Supermarkets will be banned from displaying cigarettes within six months and small retailers will have to hide packets behind their counters within a year under the laws. Premier Iemma: "Tobacco companies advertise their products for one reason - they want more customers. We want them to have [fewer]. So we're going to take them out of eyesight, and ensure young people aren't tempted into taking up smoking by glossy advertising or marketing pressure when they go shopping. We also have an obligation to those who've kicked the habit."

Cigarette vending machines will be restricted to pubs and clubs and they will accept only tokens, which smokers will have to buy from the bar. The machines will not be allowed to display any advertising.

Tobacconists will have to black out their windows so cigarettes are not visible from the street and within four years they will also have to keep them under counters.

Smoking in cars with children under 16 will also be banned. Premier Iemma: "Children in cars should not be forced to breathe in toxins from their parents' cigarettes. If parents smoke in cars, they take that health choice away from their children. I'm determined to enforce that responsibility, even if some parents aren't."

The Premier Morris Iemma will provide greater detail today and stated that he did not care if the laws seemed "over the top".

Minister Assisting the Health Minister (Cancer), Verity Firth, took the anti-tobacco plan to the Cabinet. Ms Firth said research showed that as many as 27 per cent of cigarettes bought were purchased on impulse and that young smokers and recent quitters were most likely to buy cigarettes on impulse. "Point-of-sale displays act as cues to smoke even among those smokers trying to avoid smoking or not intending to purchase cigarettes," Ms Firth said. "A recent Cancer Institute NSW survey found that 31.4 per cent of frequent smokers said that storing tobacco products out of sight in shops would make it easier for them to quit."

Klondike Snus is the first loose snus brand manufactured in the U.S., utilizing the Swedish Snus Process, which will make snus available in popular Fine Cut and Long Cut forms. Both Fine Cut and Long Cut are available in Wintergreen, Peppermint and Straight flavors. Pouches are also available in Wintergreen, Peppermint and Cherry flavors.Bill Eder, VP Marketing for Nordic American, said, "Klondike is available in 15-can and 10-can pre-packed displays as well as 5-can roll regular stock and will be supported by sales promotions, national media and traditional point-of-sale".

Why another snus product marketed in the U.S.?? Sales of snus products in the U.S. have been disappointing - one reason it's too difficult to learn the art of snusing except for kids that have the time to experiment. Les Hagen, Executive Director, ASH-Canada tells us: I have talked to several retailers in Edmonton who have told me that the product (duMaurier snus)is not selling very well at all.

From our sister site snus.biz: On 13 July 2006, Taboca, a Norwegian snus manufacturer and marketer, announced that it signed a co-operation agreement with RJ Reynolds Tobacco Co that includes an exchange of services with one another and an intent for Taboca to launch a snus product in the US within the next twelve months. No other details of the agreement were provided. ("RJ Reynolds co-operates with snus maker," Tobacco Journal International (TJI) Newsletter July 26, 2006)

July 29, 2008 - U.S. House of Representatives could vote as early as Wednesday on bill for the Food & Drug Administration (FDA) to regulate tobacco.Health and Human Services Secretary Michael Leavitt now says the White House opposes the legislation because tobacco regulation would overburden the FDA and jeopardize international trade agreements by banning some imported cigarettes, e.g., clove cigarettes, which are mainly imported from Indonesia.

The other day in a letter Leavitt wrote that giving a public health agency like the FDA jurisdiction over tobacco products would send the wrong message. "Unlike the medical products FDA regulates, tobacco products cannot be made safe, and there is no medically established public health benefit associated with tobacco," he wrote. "Adding tobacco to FDA's regulatory responsibilities could also leave the public with the misperception that tobacco products are safe, or at least safer, with the FDA regulating them." Bush administration opposes legislation to give FDA authority to regulate tobacco products..

July 29, 2008 - Stores promoting health shouldn't also be selling tobacco products.. Today, Tuesday July 29, 2008 the San Francisco's city board of supervisors will vote on whether to bar cigarette (all tobacco products) sales at pharmacies as of October 1, 2008, a measure Mayor Gavin Newsom modeled after similar bans already in force in Canada. May 10, 2008 news brief: SAN FRANCISCO Ban on tobacco at drug stores sought..

July 28, 2008 - PMI Second Quarter Results Similar to the First Quarter of 2008 with cigarette shipment volume of 223.2 billion units was up 1.0% driven by EEMA (Eastern Europe, Middle East and Africa), Asia and Latin America, partly offset by a decline in the European Union and in Japan. Total cigarette shipments of Marlboro of 79.1 billion were down 2.4%.1st Quarter 2008 - Philip Morris International (PMI) post 29% profit increase..

July 28, 2008 - According to Murray S. Kessler, chairman and chief executive officer UST exceeded its earnings expectations for the second quarter 2008. For the second quarter ended June 30, 2008, net sales increased 3 percent to $506.2 million. In the quarter, total moist smokeless tobacco net can volume increased 1.3 percent to 172 million, with premium decreasing 0.3 percent to 143.2 million and price value increasing 9.7 percent to 28.8 million, versus the prior year period. Premium volume trend softened in June, primarily in one region of the country - checking on this TW. We attribute this to increased competitive activity, our own promotional timing and higher gasoline prices. Plans have been adjusted to address these issues in order to return USSTC's premium volume to growth as the year progresses. The company is increasing promotional support in the second half of 2008 to address premium smokeless tobacco volume trends in specific areas of the country most impacted by current economic headwinds and competitive activity. (UST Reports Second Quarter 2008 Results; Reaffirms Earnings Guidance for the YearYahoo Finance, 7/24/2008.)

From the article entitled UST Isn't Up to Snuff by Charles L. Norton, RealMoney.com Contributor, 4/11/2008. The moist snuff category is divided into high-priced, premium brands and inexpensive brands in the price-value segment. The real growth is coming from the discount brands. For example, overall moist snuff volumes grew about 7% in 2007. UST's can volume, led by its pricey Copenhagen and Skoal brands, trailed behind at only 3.1%. Meanwhile, the total low-price segment grew by double digits. UST has had significant losses in market share to rivals like No. 2 player Conwood, a unit of Reynolds American (RAI - commentary - Cramer's Take), which is focused on the price-value segment with its low-cost Grizzly brand. Ten years ago, UST owned more than 80% of the smokeless tobacco market. By late 2004, the company's market share had slipped to 68%. Today, it's less than 60% and trending down. Read more...

July 27, 2008 - Smokers need not fear quitting will lead to weight gain, experts say. By combining diet and lifestyle changes with a smoking cessation program, you can throw away the cigarette pack and avoid packing on extra pounds.

There are a couple of reasons for gaining weight. First, nicotine is known to raise metabolic rate. It increases the amount of calories used; a heavy smoker may burn as many as 200 calories daily. Nicotine also serves as an appetite suppressant ; after quitting it is normal for your appetite to increase.

Many people report that when they quit smoking their ability to taste and smell is enhanced, a temptation that can lead to increased eating. It is common for people to say that before quitting they never had much of a sweet tooth but now they find that they eat sweet foods. Studies have shown that women are more likely to return to smoking as a way to avoid weight gain after quitting.

Remember - you can throw away the cigarette pack and avoid packing on extra pounds.

July 27,2008 - About 21 percent of US adults said they had smoked cigarettes during the past week when Gallup carried out its annual Consumption Habits survey on July 10-13. Gallup reported that the current figure was down from those of earlier this decade when 22-28 percent said they were smokers and that it was among the lowest figures it had recorded in more than six decades of tobacco polling in the US. The current figure is, however, similar to that recorded last year.

According to a report by Gallup’s Lydia Saad, cigarette smoking is more prevalent among younger adults (18 to 49 years) than among older adults and seniors, as has been the case in the past. Thirty per cent of people 18-29 and 26 per cent of those 30-49 said they had smoked a cigarette in the past week, while 17 per cent of those 50-64 and nine per cent of those 65 and older said they had smoked.

The results of the Gallup survey were based on telephone interviews with 1,016 adults aged 18 and older.

July 27, 2008 - Alicia Keys, 10-times Grammy-winning artist, who has sold 20 million albums worldwide, accepted the Tobacco Free Kids' accusation and insisted action had been taken to remove the offending advertisements. As a result, the tobacco company has respectfully withdrawn their sponsorship and all billboards, signage and other forms of advertising . Giant posters had been placed in Jakarta - the Indonesian capital advertised the gig as a "Mild Live Production" - a reference to a cigarette brand produced by Sampoerna - the Indonesian subsidiary of Philip Morris International. In developing countries, tobacco companies continue to sponsor concerts by famous musicians, which health advocates have condemned as a means to market cigarettes to children and to circumvent restrictions on more traditional tobacco advertising. In major tobacco companies are prohibited from engaging in brand name sponsorships of concerts under a 1998 legal settlement with the states.

About 35% of the Indonesian population smokes, and tobacco use kills more than 200,000 Indonesians each year. An estimated 78 percent of Indonesian smokers started before the age of 19. Indonesia ranks fifth among countries with the highest tobacco consumption globally.